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Ownership of homes drops to lowest level in over ten years

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According to the U.S. Census Bureau, homeownership fell in the second quarter of 2010 to 67%, its lowest level in over ten years. The level of homeownership dipped in the South and West and was lowest in the West with only 61% of all residents owning homes while the Midwest enjoyed the highest homeownership rate at 71%.

While home sales rates are still staggering after the tax credit expiration, vacancies on non-rental units are falling as well (while rental home vacancies remain at 10%).

Nationally, 57% of all housing units were owner-occupied in the second quarter and renter-occupied homes were 28% of all units.

Given that the $8,000 and $6,500 tax credits stimulated the real estate sector this spring, is it surprising that homeownership rates aren’t on the rise, rather they’re declining? Please tell us in the comments what you think of this news.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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20 Comments

20 Comments

  1. Joe Loomer

    July 28, 2010 at 7:01 am

    Areas with large military facilities can still market with the tax credit as servicemembers who deployed for 90 days or longer in the year leading up to April 30th still have another year to purchase a home and receive the credits. Same applies to government employees in the intelligence and foreign service sectors.

    Navy Chief, Navy Pride

  2. Tracy Carlson

    July 28, 2010 at 11:51 am

    This isn’t surprising to me. Until the job market rebounds, home ownership isn’t top priority for a lot people. Keeping a current job or finding one is more important (as it should be). When the job market picks up and more people are employed, we’ll see more interest in the housing market and more people willing and able to purchase a home.

    • Angie Perez aka @njretoday

      July 29, 2010 at 1:14 am

      Well said Tracy. It’s now about sustainability for many people when considering to buy a home. In my particular state, many of the local markets have made substantial price adjustments making home ownership affordable again. I remember that as recent as 5 years ago certain NJ towns had a buy in price that was in some cases 40% higher that what is it now. That’s good buyer news. . .I think a lot of skeptics are now seeing the value of the home buyer tax credit. As with most things, you don’t know what you’ve got until it’s gone. The tax credit worked according to the numbers. It easyed the market out of a difficult time. But the road ahead is just as bumpy due other market forces: costs of living, taxes, employment, etc.Only time will tell.

  3. Miami Condo Shop

    July 28, 2010 at 12:25 pm

    The surging foreclosures are a major contributing factor to this development. Lenders are speeding up foreclosures as borrowers fall behind in mortgage payments. There are a lot of folks out there losing their homes and either moving in with family or renting places to live.

  4. Al Lorenz

    July 28, 2010 at 4:56 pm

    Here is an example of market forces overwhelming attempts by the government to control the market. Politicians must be wishing they could repeal the rules of economics.

  5. Utah Realtor

    July 30, 2010 at 11:03 am

    I’m hoping the lenders ease up a bit and let some people who’ve genuinely struggled over the past few years get back into a home if their situation has since improved.

  6. Nick Nymark

    July 30, 2010 at 7:35 pm

    I am an agent here in the midwest with Coldwell Banker First Realty in Fargo, ND. I am licensed in both ND & MN and around here in the Fargo – Moorhead area the real estate market seems to still be doing well. I feel fortunate to be doing business here.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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zillow move

zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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